While the transaction, which is still pending regulatory approval, is fully funded by a combination of cash and additional debt, its likely negative impact on Sanofi’s financial risk profile is of insignificant relevance in the context of the ratings. This is not to say credit metrics will not deteriorate in 2018 compared to the previous year, but Scope believes that the likely deterioration will not be strong enough to justify a negative rating action.

Scope had stated in its last outlook statement that the rating reflects Sanofi being able to maintain the following Scope-adjusted credit metrics: funds from operations to debt of 60%, and free operating cash flow to debt of at least 40%. The agency does not believe that the acquisition of Bioverativ is likely to endanger these thresholds meaningfully and can thus maintain the ratings.